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Titan International to sell Italtractor ITM undercarriage unit for up to $285M
Titan expects about $23 million from closing adjustments, $11 million in dividends before closing, and up to $6 million more if ITM meets 2026 performance criteria.
Titan International, Inc. (NYSE:TWI) has agreed to sell its Italtractor ITM undercarriage business to USCO S.p.A. under a definitive agreement announced September 21, with an initial purchase price of about $207 million.
The total cash value for the transaction is up to approximately $285 million. Titan expects roughly $23 million from closing adjustments and $11 million in dividends before closing, and it will receive an additional $6 million if ITM meets specified performance criteria for 2026.
The company also referenced $38 million in dividends it received in earlier years. Based on the announced estimates, Titan calculates that potential future gross receipts could be about $247 million including the earnout, or about $241 million without it, with the final available cash dependent on adjustments, taxes, and transaction costs.
Titan said it plans to use part of the proceeds to reduce debt and pursue growth investments, including acquisitions and partnerships. The disposal would also narrow its operating focus toward wheel and tire operations.